Under H.R. 1, P.L. 119-21, the law known as the One Big Beautiful Bill Act (OBBBA), a new federal income tax deduction is available for qualified tips received by individuals in occupations that customarily and regularly received tips on or before Dec. 31, 2024. This deduction is effective for tax years 2025 through 2028.
Access answers to frequently asked questions (FAQs) based on proposed regulations published in the federal register on Sept. 22, 2025.Note: Previously, on Sept. 4, 2025, the